WATCH VIDEO OF THE MAYOR'S STATEMENT: http://www.youtube.com/watch?v=e5cNmjrc-Nc

These are hard times for our country, for Rhode Island and for our beloved city. As Mayor, I am determined to meet the challenges created by this recession, because no one has felt the pain of this downturn in our economy more than the taxpayers of our City. 

It is gratifying to me to see the sacrifices that have been made by many city employees – union and non-union alike – so that we can get through this temporary downturn together.

So far, the Firefighters union alone has chosen the path of short-term self-interest over common purpose. 

In spite of that, I recently laid on the table an extremely fair proposal.  This is the latest of a dozen offers I have presented since being elected.  This latest proposal guarantees pay raises and health care for the firefighters and their families.  It provides the kind of economic security for union members that many Providence taxpayers can only hope for. 

The proposal would require the firefighters, for the first time ever, to join every other city employee in making a co-pay for their health insurance.  It would reform a bloated pension system that, in some cases, costs taxpayers more than $160,000 per retiree, each year.

Taken together, these measures will save taxpayers tens of millions of dollars.  So far, the leadership of the union has failed to give their members an opportunity to vote on this, up or down.  And now -- the union bosses have taken things a giant step further, heading down a very dark path. 

As you may know, next week, for the first time ever, our city will have the honor of hosting the annual meeting of the United States Conference of Mayors.  This is a once-in-a-lifetime opportunity for Providence to shine on the national stage, highlighting all the good things about our city, and all the accomplishments of our community.

But this opportunity is now in jeopardy.  Because the union bosses have decided to picket next week’s meeting.  The result of the union’s action is that members of the Obama Administration, including Vice President Biden, the Attorney General, the Secretary of Education and eight other members of his cabinet won’t be coming to Rhode Island.

The union thinks this will force me to agree to a bloated, unaffordable contract.  They are expecting me to cave in and allow the taxpayers to pay the price.  I will not give in to this political extortion.  This means that some people will cancel plans to come to Providence, harming our hospitality and tourism industry and the workers who depend on it.  It also means that the national media coverage will reinforce the worst stereotypes about Providence, our state, and the labor movement in general.

If these union leaders think that holding Providence hostage with their selfish and destructive behavior will force me to cave in to give up and sign a contract that does not include a co-share for health insurance and real pension reform— they have made a serious mistake.  

Tactics like this have worked in the past.  That is why Rhode Island has the highest cost of fire service of any state in the country.  The average American pays $104 per year for fire services, while the average Rhode Islander pays more than twice that amount, or $231 per year.  And that’s just the tip of the iceberg. 

But let me make this clear: Regardless of the circumstances, I will always stand and fight for the taxpayers of our city.  Enough is enough.  The taxpayers have done their share.  In fact, because of the failed political leadership of the past, they have done more than their share.   In the past, political leaders bought support with employee contracts that abuse the taxpayers.  That is the old way of doing things in this city. 

This is the new way: even though the stakes are high, the right thing to do – the choice that is best for the taxpayers - is crystal clear.  I am going to finish the job of making sure that city employees have good wages, good benefits and retirement security, while making certain that whatever we do, the taxpayers of this City can afford it.

Thank you.